Financial Accounting WASSCE (PC 2ND), 2020

Section A: Theory of Financial Accounting

 

 

Question 2

 

 

  •   (a)     differentiate between book of original entry and accounting books


    (b)      Uses of source documents

  • Majority of the candidates attempted (2a) part of the question on books of original entry but could not differentiate between book of original entry and accounting books where they added account as ‘titles’ to books of original entry, In contrast, majority of the candidates that attempted question (2b) performed brilliantly well which was on source documents.

    Some of the suggested responses were:
               
    2(a)     

     

    Transaction

    Book of Original Entry

         i

    Purchase of office equipment on credit   

    General Journal/Journal Proper/The Journal

        ii

    Credit purchases from a supplier       

    Purchases Day Book/Purchases Journal

       iii

    Bank charges paid                 

    Cash Book

       iv

    Goods returned by a customer

    Returns Inwards Day Book/Returns Inwards                                                        Journal/Sales Returns Day Book/Sales Returns Journal

        v

    Goods returned to a supplier  

    Returns Outwards Day Book/Returns Outwards                                                               Journal/Purchases Returns Day Book/Purchases  
    Returns Journal

    (b)   Uses of source documents

    • Invoice:

    It is used:

    • as evidence of goods sold;
    • as evidence of goods purchased;
    • as source document for the preparation of the sales journal;
    • as source document for the preparation of the purchases journal;
    • by the store keeper to check against goods on arrival;
    • by the store keeper to pack goods out of the store;
    • for reference purposes;
    • by auditors for verification of a transaction.
    • Debit note:

                             It is used;

    • as the source document in the preparation of the returns outwards day book;
    • by the seller to increase customer’s undercharged accounts;
    • by the customer to correct an overcharged account;
    • by auditors for verification.
    • Credit note:

                              It is used:

    • as a source document for the preparation of the returns inwards day book;
    • by the seller to reduce the buyer’s overcharged accounts;
    • by the buyer to increase an undercharged account;
    • by auditors for verification.
    • Receipt:

                             It is used:

    • as a source document to make entries in the cash book;
    • as evidence of payment of money;
    • as evidence of receipt of money;
    • by auditors for verification of cash transactions.
    •   Petty cash voucher:

                            It is used:

    • as evidence to record petty cash expenses in the petty cash book;
    • by auditors for verification of petty cash transactions;
    • by the main cashier as basis for reimbursement.
     
     
    Financial Accounting WASSCE (PC 1ST), 2021


    Financial Accounting WASSCE (PC 1ST), 2021

    General Comments

     

     

    The standard of the paper compared favourably with those of the previous years. 
    The questions were evenly spread across the topics in the syllabus and were not ambiguous.
    There was decline in general performance of the candidates compared with
    that of the previous year.